Nearly a tenth of fogeys say they borrowed from mortgage sharks this yr as costly Easter holidays loom

Almost a tenth of parents with children under 18 said they have turned to illegal lenders over the past year. 

Nine per cent of parents admitted to borrowing from loan sharks, compared to four per cent of adults as a whole, according to loan provider Creditspring. 

And with the expensive Easter holidays looming, as many as four million parents said they would take loans from illegal lenders in order to survive the next six months.

With the cost of days out and holidays soaring during school holiday period, a fifth of parents said they can’t afford to take their children anywhere.

In total, as many as 7.6million people, 15 per cent of the UK’s population, will need to borrow to get by over the coming months.

Financial strain: A higher proportion of parents are borrowing from illegal lenders than the national average

Richard Lane, chief client officer at Stepchange Debt Charity, said: ‘We know how difficult things are for families across the country, and how debt can push people into desperate measures to cope with financial hardship.

‘Too often, fear and shame stop people from getting the support they desperately need. 

‘We urge anyone struggling with debt to reach out to Stepchange. Free, impartial advice is available, and it can make a real difference.’

Data from the Office for National Statistics shows that 56 per cent of people report their costs of living having increased over the past year, with a fifth having increased their borrowing or use of credit as a result.

A third of parents said they were reliant on borrowing money from family and friends in order to cover costs over the past year, compared to just over a fifth of all adults who said they borrowed from their relations and friends.

Meanwhile, 28 per cent of parents borrowed from banks, compared to just 16 per cent of all adults. 

The research, by Opinium, surveyed 2,000 UK adults, weighted to be nationally representative.

Neil Kadagathur, chief executive of Creditspring, said: ‘Parents facing a major spike in costs during the Easter holidays will need financial support to get by – however, the number of people who are forced to turn to predatory and illegal lenders is a huge cause for concern.

Maxine McCreadie, of UK Debt Expert, said: ‘Most people carry some form of debt and our experience shows that debt can happen for a variety of reasons and in many cases, it’s not a direct result of poor money management. 

‘Some of the most common causes of debt include a reduction in income or loss of employment, a relationship breakdown, or an unexpected bill like a car breakdown or broken boiler.’

Anyone who believes they might have been targeted by a loan shark can contact the Stop Loan Sharks 24-hour confidential helpline on 0300 555 2222, email reportaloanshark@stoploansharks.gov.uk or complete an online report form at www.stoploansharks.co.uk. 

Live Chat is available on the website from 9am to 5pm, Monday to Friday.